Is the recent decline in Remixed Points temporary? Will it continue in the future?
What are the TOP 5 Stock Access Rankings?
This is the top 5 domestic stock access ranking as of July 12, and among them the number 1 is, as we have covered in multiple articles before, Lightspeed Point on the Tokyo Stock Exchange Section 2.
Lightspeed Point has been covered in articles as one of the most promising stocks among cryptocurrency-related stocks, and the reason for the sudden surge in access this time is surely known by investors already: the cause is the illicit outflow of cryptocurrency from Bitcoin Point Japan.
What impact does the illicit outflow issue at Bitcoin Point Japan have?
Source:https://contents.xj-storage.jp/xcontents/AS08938/ff1684b4/ed36/426c/83c3/d15006c1f8a0/140120190712471249.pdf
On the night of July 11, 2019, in BPJ's cryptocurrency trading system, an error in cryptocurrency transfers was detected, and after investigation it was confirmed that there was an illicit outflow of cryptocurrency from the hot wallet managed by BPJ. To facilitate smooth trading of cryptocurrencies, BPJ manages some cryptocurrencies in a hot wallet. The illicit outflow came from this hot wallet, and no outflow has been confirmed for cryptocurrencies managed in cold wallets, as well as for fiat currencies. The exact quantity and amount of the outflow cryptocurrency are under investigation, but the outflow amount is estimated at about 3.5 billion yen (of which about 2.5 billion yen were customer deposits and about 1 billion yen were BPJ's own holdings) at the exchange rate as of 16:00 on July 11, 2019. Details will be disclosed promptly as soon as they are clarified. The cryptocurrencies managed in BPJ's hot wallet are Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple (5 currencies).
The above describes the current details, which indicate that cryptocurrencies worth about 3.5 billion yen were illicitly outflowed from the hot wallet managed by Bitcoin Point Japan.
In response, yesterday the stock price of Lightspeed Point, which fully owns Bitcoin Point Japan as a subsidiary, fell sharply, and we believe this impact is likely to continue in the short term.
The reason we believe the impact will continue is because there is a strong sense of uncertainty about the future due to the lack of concrete solutions being announced.
Not only is this situation ongoing, but Lightspeed Point has fallen to the stop-loss level, increasing the risk of continued panic selling from investors who had previously invested in Lightspeed Point.
Of course, my personal view on cryptocurrency has not changed, and I believe it will recover in the long term, but such unforeseen events will continue to be a factor in the short-term decline of stock prices.
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